Posted on: 2nd April 2026, by Magrathea
The recent completion by Ofcom of the Reviews of Call Termination Markets and End-to-End Connectivity Condition will be our bedtime reading for a few nights to come and we will share our conclusions in more depth very soon. At a summary level we feel it’s a mixed bag. On one hand it’s disappointing to see the removal of the end-to-end connectivity condition because in our view this makes it more difficult for smaller players to negotiate with an established incumbent. But there are also aspects we support including ongoing regulation of call termination services for the next five years. This commitment reinforces Ofcom’s ongoing drive to encourage a competitive environment.
Arguably this drive is helping the majority of end-users to have access to both choice and value but depending on where you operate in the channel, the voice market can in fact feel increasingly congested. Margins are tight and challenging to protect, wholesalers are operating vertically and Altnets have now joined the marketplace – competing directly with larger incumbents. In that context, profitability in the telco industry can sometimes look and feel like a dark art.
At a wholesale level, value is driven by the effective management of quality carriers and interoperability. The ability to adapt to external pressures, while innovating internally to reduce risk and cost – without compromising customer support – is key. For service providers within the channel, the start point is selecting the right wholesalers for their business model and target market. Yet researching and comparing wholesale voice providers is far from straight forward.
There are several reasons why evaluating wholesalers can be challenging:
- Inconsistent terminology. Core services are not always described in the same way. For example, some providers refer to ‘trunks’ where others use numbers – making direct comparison difficult from the outset.
- Limited pricing transparency and differing commercial models. Pricing is rarely published openly and, when it is, it is seldom presented in a way that allows like-for-like comparison. Some wholesalers may bundle minutes into monthly deals, others operate a pay-per-minute model. Apparent incentives – such as free porting – are often absorbed elsewhere in the pricing structure, obscuring the true costs.
- Potential channel conflict. Some wholesalers also operate in the retail market, meaning that they may ultimately compete with their own customers. This can influence pricing, positioning and strategic alignment.
Even within a relatively small pool of pure wholesale providers, approaches can vary significantly, making it difficult to identify the right fit based on surface level information alone – so how do you find the right one?
Where to research
As mentioned, building a short list is not always easy.
- Websites. Every wholesaler will have a website and most will have some testimonials and/or case studies to review – however, be aware that many providers use wholesalers to host and therefore will not advertise their use of a specific network.
- Industry groups and forums. Membership and event attendees lists can provide helpful intel – but again be aware that not all wholesalers are represented.
- Peer insight. The most valuable and reliable source of information is still first-hand experience. Informal conversations with industry colleagues will often provide a far more realistic view than published materials.
What do you need to ask?
A good place to start is by asking:
- Do they use Tier 1 carriers? A strong network will operate directly with Tier 1 providers, ensuring there is maximum up time and they can support global A-Z termination.
- Are they sufficiently along the migration path away from TDM, or still reliant on legacy infrastructure?
- Does their pricing model match how you operate – eg high volume vs specialist? There is an understandable attraction in a low cost-per-minute unit or anything offered as free but hidden or unexpected costs can erode margin.
- How is cost balanced against quality and reliability? For example, If the wholesaler is not interconnected to reliable carriers, then calls may not connect and if routes are not the best then end-users can end up disappointed with a low-quality service.
Making sure how a wholesaler charges matches your business needs is key – if you operate at a high volume then a packaged minute deal may work better, however if you operate in sensitive verticals where resilience and security are key, then those aspects will be key decision drivers.
Other important considerations include:
- Can they scale with you easily as you grow? If they can’t quickly scale then you’re limiting your current operations as well as any future expansion.
- How quickly can they respond to developing and/or changing needs – new users, new services or traffic spikes?
- Do they offer APIs and self-service portals? These are tools which should make life easier, enabling you to self-manage and work in different time zones if needed.
- How easily can their systems integrate into your operation?
- Do they act as a trusted strategic partner? In our view an excellent wholesaler will work with you, support your growth with their technical expertise be there to respond to bespoke needs if required. They will help guide on regulatory issues and provide industry training on key areas, such as porting.
- What resilience is built into their network? How do they comply with the Telecoms Security regulations?
- How do they communicate during incidents? No interoperable network can be entirely fault free, but how they have built resilience into their structure and how they handle issues is extremely important.
Finally, we would recommend a long look at longevity, transparency and reputation – these factors are key to understanding the wholesaler and how they operate. Wholesale telecoms is relationship driven, and whilst not always quantifiable, these are key indicators to the success of the wholesaler which in turn makes it easier for you to compete, grow and adapt.